Housing and equity wealth effects of Italian households

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The study quantifies stock market and housing market wealth effects on households' non-durable consumption using Italian household panel data (SHIW) of 1989-2002. We found all households react similarly to aggregate housing and stock market gains. We also found statistically and economically significant housing wealth effects with a marginal propensity to consume out of idiosyncratic housing wealth gains to be over 8 percent. The results from idiosyncratic equity wealth e¤ects were lower, at around 0.4 percent. We also found that older households react more to changes in housing wealth.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Working Paper ; No. 857

Classification and Topics

• Classification: Wirtschaft ; Consumer Economics: Empirical Analysis ; Macroeconomics: Consumption; Saving; Wealth
• Subject: Equities ; housing ; Marginal Propensity to Consume ; Börsenkurs ; Immobilienpreis ; Vermögenseffekt ; Konsumentenverhalten ; Italien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Grant, Charles ; Peltonen, Tuomas A.
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/153291
• Last update: 10.03.2025, 11:45 AM CET